Essay
Fully vested incentive stock options for 60,000 shares of common stock at an exercise price of $50 were outstanding at the beginning of 2013. The market price of the stock averaged $56 during the year.
Required:
If these options are exercised on March 1 of the current year, by how many shares will the options increase the weighted-average number of shares outstanding when calculating diluted earnings per share?
Correct Answer:
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[(60,000 - 53,571*) x 2/12] + (60,000 x ...View Answer
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